There has been huge momentum behind the ‘shop local’ movement over the last few years, as consumers have been restricted to certain locations during COVID-19 lockdowns, and felt connected to the success and survival of local businesses.
This was partly measured by 2021 research from Shopper, with 62 per cent of customers making an effort to support local businesses, and one in three Australians feeling closer to their local community during this period.
Meanwhile, a survey of 1000 Australians conducted by Freshworks in 2021 showed that 78 per cent would spend money they otherwise wouldn’t to support workers and businesses, while 97 per cent of those who shifted to shopping locally wanted to maintain this behaviour.
The organisation is continuing to emphasise the importance of shopping local, and is running the second, annual Main Streets of Australia week – between May 15 and 21 – to highlight the importance of local precincts, and the people and businesses behind them.
Hosting events and activities, the week represents a call to action for locals, and members of the wider community, to support their main street, and enjoy everything their local area has to offer. Over 25 events have been confirmed across the country, with areas ranging from Ipswich in south-east Queensland to Hobart, Tasmania.
Ensuring their survival
Liz Joldeski, Executive Officer at Mainstreet Australia, told Inside Retail that main streets provide opportunities for people and their communities to work, shop, be entertained and access community services among a range of other offerings.
She pointed to data showing that main streets employ about 390,000 people in Victoria – which amounts to almost 12 per cent of the state’s jobs – and generate more than $50 billion in economic value. They also provide critical employment opportunities for diverse and often marginalised people.
“[The] more than two million small businesses in Australia do an enormous amount for the community. We need to support them and our main streets to ensure their survival,” Joldeski said.
Confronted with cost-of-living pressures, Joldeski said that businesses and traders in these areas play a central role in galvanising and sustaining local communities. They work best, she said, when all stakeholders – including retailers, governments, associations and property owners – work together to activate and rejuvenate main streets.
“We’re still emerging from the COVID-19 pandemic, [and] our main streets and the businesses that occupy them sit at a crossroads. There is a renewed interest in, and connection to, these heartbeats of our community as people retain a preference for working from home and staying within their local neighbourhood,” Joldeski said.
“More and more Australians want to shop, work and play locally and main streets [are] the gathering place for so many. [But] the picture is not all rosy. Main street businesses face a number of threats [such as labour shortages, supply chain challenges and cost of living pressures] that could, if not addressed, lead to them facing increasingly severe financial pressures.
“We definitely need to keep the focus on main streets and the momentum to shop local has to keep going – that’s what Main Streets of Australia Week is all about.”
Localism is here to stay
In 2020, Dr Louise Grimmer of the University of Tasmania co-wrote for The Conversation about the growth of “localism”, whereby people would opt to shop in their local village and high street where possible.
Despite significant efforts to entice workers back to the CBD, she said a full-time return back to the city hasn’t materialised as people continue to work from home. She added that we’d perhaps never see the number of workers in the CBD return to pre-pandemic levels.
As such, the nature of retail in the CBD has changed, with fewer workers in the area, and a greater focus on weekend and night-time activity. There has also been a rethinking regarding how office and retail spaces can potentially be used. For stores not located in CBD areas, Grimmer told Inside Retail that retailers were still seeing solid patronage following COVID-19 lockdowns.
“Consumers are certainly continuing to support local stores, and localism is still going strong. Local retailers that continue to meet the needs of consumers, and [have] adapt[ed] their business models as conditions changed, are [performing] well,” Dr Grimmer said.
While cost of living pressures and tight household budgets are undoubtedly affecting retailers across the country, she believes that the localism movement is “here to stay”.
For retailers located away from the CBD, Dr Grimmer suggested that they urge customers to shop local and emphasise the convenience and value add of doing so. She also said that they should discuss the work they do to support the local community, as this resonates with shoppers.
“There is no doubt CBD retailers benefit from economies of scale, from city marketing programs and attention from local councils keen to revitalise city areas,” Dr Grimmer said. “Stores in non-CBD areas really need to work together in their respective locations and market their local area, work with the local council to ensure they receive support for marketing efforts and keep using shop local messaging.”
Break up the day
Kerry Daly, manager at the Camberwell Centre Association in Melbourne’s inner east, highlighted the role played by local shops in providing jobs, contributing to local community fundraising efforts, and acting as important points of contact for people to meaningfully connect with others.
She said these businesses are often family run, hold long-term tenancies and form part of the local village. Many of these businesses are also service based, providing an offering that can’t be accommodated in big malls and shopping centres.
Daly observed that the Camberwell Junction shopping precinct’s vacancy rate pre COVID-19 was about seven per cent. It jumped up to 12 per cent over the last few years, before dropping to about nine per cent.
She said that there had been much changeover during this period, with the area losing retailers who struggled during Melbourne’s lockdowns. However, new tenants moved into the shopping strip, and others repositioned when other locations became available.
“As restrictions were lifted, people were very keen to get back into the shops that they had been window shopping in,” Daly told Inside Retail. “We have seen a return of office workers but many that are still working from home at least some days [will] continue with their regular visits to break up the day.”
Daly added that the strong promotion and messaging for workers and shoppers to return to the CBD hasn’t had a great effect on Camberwell Junction. But, she said the association would continue to promote the benefits of shopping locally, and remind customers of the value that can be found in vibrant, local shopping areas.
“We aim for [the] subtle ‘use of it or lose it’ reminder,” Daly said. “For traders, the best strategies to remind customers of the value in local shopping is [by emphasising] old school, friendly customer service, and [by] offering local delivery options.”
Positive signs
Meanwhile, Joldeski said COVID-19 lockdowns and restrictions changed customer behaviours, including when, where and how they shop, eat and play. She maintained that people were still navigating changes to their way of life in the years following.
Subsequently, Mainstreet Australia is working to improve the vibrancy and vitality of precincts everywhere, including in cities, outer suburbs and regional towns.
“There are positive signs that our cities are becoming more attractive places to visit in evenings and on weekends. Our regional towns will continue to thrive during peak tourism periods, and have also benefited from some CBD professionals being able to choose to work from home and shop, eat and play more locally” Joldeski said.
“People are still choosing to have flexible work options and will continue to work from home with employer support. This certainly has positive impacts on local businesses.”
This story first appeared on our sister publication Inside Retail
